I believe that sometimes an instrument will go up if it will go above a level or vice versa. I believe that sometimes trading is that simple. Of course this strategy is affected by false breakouts, but at the end of the year, a trader applying this strategy should come out ahead.
Wells Fargo is currently standing at this type of level. It is the base of a massive weekly H&S pattern and a big daily triple bottom.
On the weekly chart, the volume indicators point to climactic volume, which makes me believe that all the selling has been done. A push up from the daily triple bottom will create a great weekly bullish divergence.
On the daily chart, a false break and a strong reversal yesterday.
As for targets, if I am right on the medium term, this stock should reach 49$. That is where I want to take some off the table. The rest of my position will be held for a longer time (unless stopped out) because if this massive H&S is not going to break, the uptrend will continue, and we shall see at least 60$.
Wells Fargo is currently standing at this type of level. It is the base of a massive weekly H&S pattern and a big daily triple bottom.
On the weekly chart, the volume indicators point to climactic volume, which makes me believe that all the selling has been done. A push up from the daily triple bottom will create a great weekly bullish divergence.
On the daily chart, a false break and a strong reversal yesterday.
As for targets, if I am right on the medium term, this stock should reach 49$. That is where I want to take some off the table. The rest of my position will be held for a longer time (unless stopped out) because if this massive H&S is not going to break, the uptrend will continue, and we shall see at least 60$.